Canon's potential trump card

[evo-lution]

Now that 500D is launched.... It all boils down to pricing now. Could the 500D be Canon's trump card after all?

Nikon D90 body only: $1400
Canon EOS 450D body only: $888
Canon EOS 500D body only:

But 500D with higher pixel count(15MP sensor VS 12MP sensor)....
ISO looks comparable on paper between the both, but given 5DMKII's outstanding noise control....
AF... Nikon seems to be leading...
Built wise, D90 is definitely leading with a bigger body(think 40/50D)...

Seems like Canon have got itself quite a huge margin to play with in terms of pricing....

Guys, what do you would be a stratergic price for the 500D to clinch market share?

[SVG84R]

1.5k with kit

[frankchn]

I think it is sensible to price it at around $1199 for body only, or $1349 for body+18-55IS

[localhost]

will 450D price drop immediately once 500D launch?

[zj2000]

Where can find 450d for 888?

[evo-lution]

Originally Posted by localhost will 450D price drop immediately once 500D launch?

Haha, u asking me arh? I have totally no idea. I'm no Canon guy...

But I think it will. Or at least within the first week or so. When 500D is launched, I dun think 450D will go out of production. I think Canon's stance is to let them co-exist for sometime. Giving an option to consumers if they want a video enabled DSLR or not.

One thing to note too, actually its quite clever of Canon in this case to launch the video enabled 500D a couple of months after nikon. In this way, all kind of "market testing" have been done by Nikon with regards to market response on video enabled DSLRs. Yes, Nikon in this case have practically bared all risk of defining a totally new product sub-segment.

Hence, when 500D actually hits our shores, Canon do not need to spend tonnes of $$ introducing this concept to the market. And it can almost hit its "growth stage" of its Product life cycle(PLC) almost instantly provided it sets its price right.

Also, when 500D is available officially, 450D will enter into the maturity stage of its PLC. It may induce mass adoption of the 450D from the current PnS market by doing a price drop.

As for the 1000D, it is still a toy to most. And it will remain a toy.

[evo-lution]

Originally Posted by zj2000 Where can find 450d for 888?

Canon pricelist thread. Some of the small talk at the end.

[neubdetat]

for it to be a "trump card" wouldn't it be worth it for them to offer the lowest price ever imagineable? That's the whole idea of a "trump card", something offered at such a value that the other competitors can't match it. If they were to competitively match it to the D90, it already loses it's "trump card"-ability

[evo-lution]

Originally Posted by neubdetat for it to be a "trump card" wouldn't it be worth it for them to offer the lowest price ever imagineable? That's the whole idea of a "trump card", something offered at such a value that the other competitors can't match it. If they were to competitively match it to the D90, it already loses it's "trump card"-ability

Interesting.... But do bear in mind, manufacturers need to balance profits & marketshare. Sufficient marketshare leads to greater profits and greater potential profits. Especially the Japanese whom are very particular about this thing called "pride". Furthermore, Canon have been the so called "No. 1" in digital camera sales since 2001 IIRC....

So, in your opinion, what is the balancing point here? I dunno if u have polled, but i am unable to see who polled for what.

[Sivakis]

Why offer it at the "lowest price possible" and lose the market of early-adopters? There will always be either a) newcomers who don't mind paying a slightly higher price for the latest model and b) upgraders who don't mind paying a slightly higher price.

Once the figures show signs of stagnation, a price reduction will again repeat the above cycle. By offering at the "lowest price possible" they lose out in terms of variable profits that they could have otherwise enjoyed.

Every new model enjoys a so-called "golden window of opportunity", a certain number of months until a newer model is introduced. With a strategic pricing strategy, the model can then enjoy continued sales with decreasing profit margins (may not necessarily be big decreases if there are substantial economies of scale from improved manufacturing / assembly processes) until the next new model is introduced and the cycle repeats.

[evo-lution]

Hmmm.... Poll results are getting interesting.... Many voting for the both ends..... Keep your votes coming in. Its interesting to know what price are consumers willingly to pay for the first video enabled entry level DSLR by Canon.

[Sivakis]

Originally Posted by evo-lution Hmmm.... Poll results are getting interesting.... Many voting for the both ends..... Keep your votes coming in. Its interesting to know what price are consumers willingly to pay for the first video enabled entry level DSLR by Canon.

Obvious case of "thinking with their heart" and "thinking with their head"?

[evo-lution]

Originally Posted by Sivakis Obvious case of "thinking with their heart" and "thinking with their head"?

Well, if Canon thinks with CONSUMER"S heart, how great.... If that day ever comes, its really "DELIGHTING YOU ALWAYS"

[neubdetat]

well the MSRP is already out, 800 USD which is 1100-1200 SGD, which will become $1000-1100 3 months after its launch. IMO, that would be the market "sweet spot" for a brand new dslr.

Truthfully this camera doesn't really seem like any major innovation at all. They increase production of the 50d sensor, thus gaining discounts because of economy of scale. Software research has already been finished with the 5dmkii so they slap in video there. So as far as I think, they can afford to put whatever price they want on the 500d and still earn a very tidy profit off of them.

Its up to them to decide how the market will react, but I am sure that if they could and if they wanted to, they could price the 500d at $900 and really put a dent on Nikon/ Sony/ Pentax/ Olympus/ blah blah sales by changing the game significantly once again and making everyone else play catch up. They did it with their first dslrs, they did it with the 5d, I'm pretty sure if they wanted to they could recapture the beginner market again.

[Kit]

Originally Posted by neubdetat Truthfully this camera doesn't really seem like any major innovation at all.

Truthfully, we get this "innovative' comment everytime a camera is announced.

[nottipiglet]

I actually like the build of the 450D (and similarly 500D). It is very very light. Few of us need the strength of a magnesium alloy body and the weight that goes with it. I like to take nice pictures and I don't care to impress my friends with my equipment. The low price that comes with the plastic body is a real bonus to me... and that is why I picked the 450D.

[evo-lution]

Originally Posted by Kit Truthfully, we get this "innovative' comment everytime a camera is announced.

Yea, but come to think of it, do we really need that innovation? For me, as long as it helps me achieve better pics and/or simplify my shooting proccess with each new generation of camera, the product is already a success. Innovative or not, doesn't really bothers me...

Originally Posted by nottipiglet I actually like the build of the 450D (and similarly 500D). It is very very light. Few of us need the strength of a magnesium alloy body and the weight that goes with it. I like to take nice pictures and I don't care to impress my friends with my equipment. The low price that comes with the plastic body is a real bonus to me... and that is why I picked the 450D.

Yeap, 450D is indeed very portable and light. Great for walkabouts actually. But for other forms of shooting, I think the 40/50D build it nice.

[spartacus.ret]

...

business lesson has begun, class!

[evo-lution]

Originally Posted by spartacus.ret ... business lesson has begun, class!

Whose the lecturer?

[Kit]

Originally Posted by evo-lution Yea, but come to think of it, do we really need that innovation? For me, as long as it helps me achieve better pics and/or simplify my shooting proccess with each new generation of camera, the product is already a success. Innovative or not, doesn't really bothers me...

At times, we are so obsessed with camera innovations we've forgotten to innovate ourselves.